As a business buyers advocacy firm we know what buyers are looking for and why some businesses sell and others don’t. Genuine buyers will make decisions based on the information available. There are thousands of businesses for sale at any one time and the challenge is to ensure your business is seen by buyers and is ready for sale.
Selling a business is about timing. Many good businesses for sale go stale over time having not been seen or have been overlooked by genuine buyers due to poor marketing or lack of current information available.
When we search for businesses for our clients, if a business is not marketed correctly, does not have the required information available or there are delays in receiving information, then it’s most likely we will not look any further at that business. Time is important and we look for genuine business opportunities ready for sale.
By helping sellers prepare their business for sale, we are directly helping buyers. By ensuring sellers are ready to market their business means a buyers time is not wasted and deals can be done. Genuine buyers for ready sellers.
BBA knows what buyers are looking for and why some businesses sell and others don’t.
BBA is assisting sellers to ensure their business is marketed to capture buyer’s attention and is in a position to provide enough relevant and current information to genuine buyers, so an offer to buy can be presented.
BBA will help you get the deal done with genuine buyers.
At BBA we always felt that the commission a Business Broker charged to sell a business was a significant impact on what a seller realised on a sale. Whilst marketing a business is an inherent cost, the typical 8% commission on the sale price in addition to advertising was excessive.
On a $500,000 sale, business brokers may charge commission exceeding $40,000 + GST. This commission comes straight off the sale price.
You don’t need to pay a huge commission to sell your business.
BBA will need to get a good understanding of your business and how it can be presented to maximise buyer enquiry. Where possible we would like to meet with the seller prior to preparing any documentation to make sure the sale process is clearly outlined.
BBA will prepare all documentation in the form of a Business Profile/Information Memorandum that will be required for a genuine buyer to assess the business. The profile will include all facets of the business including financials.
As buyers advocates we do not investigate businesses for our clients unless a current and informative business profile is provided on request. It is vital that all the relevant business information is ready and presented in a professional manner.
To attract a genuine buyer you need to be genuine with the information provided.
If buyers or their advisers detect that relevant information has not been disclosed or deliberately not provided or withheld without reason, then in many cases they will not investigate the business any further.
BBA knows what information must be provided and what should be provided to encourage a buyer and/or their adviser to investigate further.
BBA provides a business search service to buyers. We know what advertising works and what doesn’t. We know what type of advertising content attracts high enquiries from buyers and why other advertising generates few enquiries. Expert copywriting and relevant information in advertising is vital to the sales campaign.
BBA will write your advertising copy and upload your business on eight prominent business for sale websites.
BBA will monitor the performance of the advertising to ensure that it is reaching genuine buyers whilst providing the information needed to generate interest and follow up.
As Business Buyers Advocates , BBA has a database of business buyers looking at various opportunities at any one time . Whilst your business will be advertised to the general public it will also be matched to our buyer database.
BBA’s buyer clients are genuine buyers that have paid BBA to search for specific businesses. If BBA matches a current BBA buyer client with your business, then BBA will not represent the buyer in negotiations.
BBA will assist both parties throughout the sale process.
Having BBA as a third party assisting both the seller and buyer is a non-confrontational approach to finalising a deal that will benefit both parties. A win/win approach is how deals should be negotiated and finalised.
BBA will be the contact for all enquiry leads for your business. With BBA following up on all leads enables you to concentrate on what you do best – operating your business.
Advertising attracts many enquiries. Enquiries come from all types, some which are sincere and others purely enquiring to gather information. The latter may be competitors wanting to find out details of the business, business brokers looking for listings or those that have no intent to buy and are just time wasters.
BBA will take all leads and qualify all enquiries. Only those enquiries that are determined as sincere and have the capacity to buy will be generated onto a buyers list. By qualifying leads we are dealing with serious enquiries for your business.
The challenge is to transfer qualified leads into genuine buyers. Information must be transferred to the buyer so they can get an understanding of the business operations and financial performance.
To be given this information all potential qualified buyers must sign a BBA Confidentiality Agreement. Only on receipt of a signed Confidentiality Agreement, will documentation in the form of a Business Profile/Information Memorandum be released. BBA will coordinate this process and answer any direct queries and follow up with requests for further information.
The intention is to have genuine buyers be in a position to make an offer to purchase.
With a genuine buyer, BBA will arrange a meeting between you and the buyer. Depending on the business and location, the meeting may be onsite or offsite.
The purpose of this meeting is to discuss the business in more detail and answer any queries that may not have been previously covered or need further clarification.
This meeting is also an opportunity for you to feel comfortable about the buyer and their ability to operate the business.
Some sellers are very concerned about existing staff and clients and want to ensure the new owners are of a similar mindset in valuing staff and client relationships.
In many cases sellers would like BBA to act as a facilitator for both parties to assist with coming to an agreement on the price and terms of a sale.
As an independent third party, BBA can facilitate deals resulting in a win/win for both parties. That’s how deals should be done.
The position BBA takes in facilitating the meeting is in a non-confrontational manner as it is not representing either party but both. This approach encourages deals to be done as BBA takes the role of a facilitator.
BBA charge a Negotiation Fee of 2% + GST on the final sale price, if engaged to negotiate a deal between sellers and buyers which results in a successful sale.
BBA will prepare the Heads of Agreement/Terms Sheet based on the final offer to purchase. Once signed by both parties the agreement will form the basis of the contract which will include the agreed price, terms and conditions of sale.
The signed Heads of Agreement will be forwarded to solicitors of both parties with a deposit to be held in trust account of the vendor’s solicitor.
There will be various terms and conditions to be met up till settlement. BBA will assist you throughout the process and work closely with your solicitor and accountant as required.
BBA will assist you throughout the sale process up till settlement.